CPA rate - the top of the conditions
If a partner only hears “$X for FTD,” they don’t know the real economy yet. Three parameters can significantly change the outcome: KPI, hold and cap.
KPI
KPI defines the requirements for the quality of action. It can be a set of criteria that distinguish a fixed FTD from a confirmed one. Specific requirements should always be obtained from the manager for the selected offer and GEO.
Hold
Hold is the period during which the result is verified until final confirmation. It affects the rate of cash flow and when the partner can count the final figure.
Cap
Cap limits the number of actions or the amount of traffic per period. If the campaign scales quickly, achieving cap without prior approval can make part of the volume useless.
| Parameter. | Question of launch |
|---|---|
| KPI | What is considered a confirmed action? |
| Hold | When does the status become final? |
| Cap | How much is allowed and how to increase it? |
illustrative example
The system shows 100 FTD at a rate of $100. At first glance, the income is $10,000. But if 82 actions are confirmed, the actual CPA base is $8,200. If advertising spending was based on all 100 FTDs, the plan would be too optimistic.
How to monitor
Count two CPAs: the cost of raw FTD and the cost of confirmed FTD. The second indicator should be used for the scaling decision.
When to ask for an increase in cap
Not when the limit has been exhausted. If the campaign approaches the cap and the quality is stable, prepare figures in advance by volume, approval rate and the cost of the confirmed action. It makes the conversation meaningful.
Page CPA It contains a basic list of parameters that should be agreed before the start.
Calculate approval rate for each source
A general approval rate may be acceptable, but hide one problematic placement. The subID breakdown shows where actions are often not confirmed, and allows you not to worsen the conditions of all traffic due to one segment.
Hold Affects Working Capital
Even a profitable campaign can be inconvenient to scale if the costs are paid today and the result is confirmed much later. In a budget model, consider this time gap separately from the margin.
Cap is part of the plan, not a hindrance
The limit helps to agree on the amount that the program is ready to accept in the current environment. If the test shows strong quality, the increase in cap becomes a matter of negotiation based on the data.
What to fix in writing
Bet, Action Definition, KPI, Hold, Cap, GEO and the start date of the conditions. If one of the parameters changes, save the new version of the agreement and mark the date in your report.
Predict confirmation, not just FTD
If the historical approval rate is 80%, the budget for 100 raw FTDs cannot be considered as if all 100 will be paid. Use a conservative estimate of confirmations and recalculate it after each significant change in source.
When the KPI requires clarification
If the wording allows two interpretations, ask the question before launching and save the answer. One cannot build an economy on the assumption of how a controversial criterion will be interpreted.
Change of cap
When requesting a higher limit, show not only the volume, but also the stability of quality: several periods, approval rate and the absence of anomalies. Such a data set is better at demonstrating readiness for scale.
